Faurecia posts good first quarter results

The automotive components manufacturer has posted value-added sales of €4.23 billion, +9.8% on an organic basis and +4.9% above worldwide automotive production growth.

Faurecia’s value-added sales in the first quarter of 2017 increased 10% to €4.23 billion (2016: €3.84 billion), representing an organic growth of 9.8% of which 1.7% came from consolidation of two joint ventures; JV with Chang’An and JV with FCA. The changes in exchange rates are reported to have had a positive impact of €66 million (+1.7%), while the divestment of the Fountain Inn plant had a negative impact of €58 million (-1.5%). Yanfeng Automotive Interior acquired Faurecia’s manufacturing plant in Fountain Inn, South Carolina, U.S., in July 2016. Read more here.

The Group, which now communicates in ‘value-added’ sales (total sales less monoliths sales), reported a 3.5% increase in value-added sales in Europe to €2.102 billion (2016: €2.030 billion); posting an organic growth of 4.1%, while automotive production grew 6.6%. Production disruption for two OEMs due to a fire in a supplier plant is said to have reduced Faurecia’s sales by around €50 million.

In North America, value-added sales rose 11.3% to €1.206 billion (2016: €1.084 billion), and the variation in exchange rate parity is reported to have had a positive impact of €41 million (+3.7%), while scope had a negative impact of €58 million (-5.3%); representing an organic sales growth of 12.9%, against a 1.6% increase in automotive production.

In Asia, value-added sales grew 17.3% to €688 million (2016: €587 million). Currency exchange rates are said to have had a marginal negative impact of €0.1 million. The consolidation of a JV with Chang’An in China had a positive impact of €38 million (+6.4%). The supplier reported a 17.3% increase in organic growth, of which 22.5% was in China compared to light vehicle production in Asia growing 4.4% (+5.6% in China). The Group posted €534 million value-added sales in China, up +20.4% year-on-year, or +22.5% organic. Sales to local Chinese carmakers grew 89%, representing 17.5% of the Chinese sales.

In South America, value-added sales rose 73.3% to €168 million (2016: €97 million in 2016). The consolidation of the JV with FCA (production for Pernambuco based plant) is said to have boosted sales by €28 million. Currency fluctuation represented an increase of €28 million (+28.6%), while organic growth was 44.7% in the period.

Overall, sales in the Seating segment grew 13.1% (+11.5% organic) in the first quarter to €1.789 billion (2016: €1.582 billion), “spurred by the full year impact of new programs for Ford and BMW”.

On April 11, Faurecia’s Board of Directors appointed Michel de Rosen as its new Chairman with effect as from May 30. De Rosen will succeed Yann Delabrière, who joined the Group as a Director in 1996 and held the position of Chairman and CEO from February 2007 to June 2016.

De Rosen has been CEO and Member of the Board of companies in France and the U.S.